What is Real-time Reporting
- Posted by admin
- 22 October 2013
In today’s world, new technologies and the ability to process vast amounts of data have changed the way accounting works, both today and in the future. Business owners that are going through the processes of registration and incorporation should consider the benefits provided by real-time reporting, as they can help these businesses to succeed.
Getting Information to Investors
It is important to consider why the complex procedures behind creating periodic financial statements are quickly becoming outdated. First and foremost, many companies that are in the process of completing the registration and incorporation processes rely upon investors in order to get the funds they need. These investors want information in real time, and businesses need to have processes put in place, even during their initial setup, to make sure that the stock markets have updated data at all times. Real-time reporting software is important for making sure that this information is always available.
Analyzing Transactions and Business Growth
Another primary benefit of real-time reporting is the ability to keep track of the vast number of transactions that many companies process each and every day. Rather than waiting for quarterly or semi-annual results, these business owners can determine exactly when transactions slow down or speed up, and then make immediate changes. This allows for marketing specialists to determine the ways in which products and services should be modified – or even the ways in which marketing efforts should be changed – in order to appeal to more people during slow times.
Something else to consider when it comes to the processes behind standard reporting is the relevancy of the information that is provided once the process has been completed. It often takes weeks or sometimes even months for the information gathered during a period to be analyzed, processed and reported. For a business that has recently been through registration and incorporation and is trying to launch in a difficult market, the information bears almost no relevancy, since things may have changed drastically since the process began. Real-time reporting negates this irrelevancy, and helps new business owners better understand their positions in the market.
More Revenue and Efficiency
Finally, real-time reporting software allows businesses to generate more revenue and operate more efficiently. Since the software negates the need for teams of individuals to spend weeks working on the preparation of financial statements, these individuals can work fewer hours and spend these hours on more appropriate, meaningful tasks. Human Resources departments can more easily provide employees with important information related to taxes and payroll. Even during the formation of the business, this software allows the business owner to focus on the task of launching his or her business without the need to hire an accountant.
Any business, large or small, can certainly benefit from real-time reporting software. Whether a business is in the registration and incorporation stage or has been around for decades, this software will certainly make things easier for everyone, making the business owner as well as his or her employees and investors much happier in the long run.